Career School of NY, Inc

The Scool did not adequately complete monthly reconciliation for Federal Direct Loans and Federal Pell Grants

The Single Audit Package for the School's fiscal year ended December 31, 2023 did not submit to the Federal Audit Clearinghouse within the required time frame.

DIRECT LAON QUALITY ASSURANCE SYSTEM

Finding 2021-001: Enrollment Reporting Roster File Condition The 2021 SCHER1 report indicated that in two instances the Institution did not timely submit the Enrollment Reporting Roster files that include changes in students? statuses to the Department within 15 days of the date that the Department sent the files to the Institution. Criteria The Institution is required to report changes in students? statuses to the Department within 15 days of the date that the Department sent the Institution the Enrollment Reporting Roster Files. Effect The Institution was not in compliance with the reporting requirement with respect to the submission of Enrollment Reporting Roster files. Cause The Institution did not timely update and submit the files to their third-party servicer to ensure compliance with the Enrollment Roster File reporting requirements. Questioned Costs There are no questioned costs associated with this finding as the exceptions noted relate to the regulatory procedures as opposed to allowability of costs. Recommendation We recommend that the Institution should implement procedures to ensure that changes in students? statuses are submitted to the Department within 15 days of the date that the Department sent the Enrollment Reporting Roster Files to the Institution. Management?s Views and Corrective Action Plan Please refer to the Institution?s Corrective Action Plan for management?s view and corrective action.

FINDING: 2020-001 Incomplete Verification Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Special Tests and Provisions (N) CFDA Number: Federal Pell Program ? 84.063 Federal Direct Loan Program ? 84.268 Questioned Costs: $9,068 Type of Finding: Material Noncompliance Material Weakness in Internal Control Perspective Information: Repeat finding: No Systemic finding: No Summary of Universe and Sample of attribute tested "See Schedule of Findings and Questioned Costs for chart/table" Criteria The School is required to request from an applicant selected for verification, to submit acceptable documentation as described in ? 668.57 that will verify information used to determine the applicant's eligibility. Condition The School did not complete the verification process as required on the students? ISIR for the following students: "See Schedule of Findings and Questioned Costs for chart/table" Cause The School failed to complete verification procedures for three students, as required by DOE. Effect The students were credited with $9,068 in Pell and DL that they were not entitled to. Recommendation The School must follow DOE verification procedures prior disburse funds to a student. The School must either refund $9,068 to DOE or the School should obtain the required documents. It should also update its policies and procedures to ensure verifications are performed correctly. Views of Responsible Officials The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance requirements.

FINDING: 2020-002 Uncleared ?C? Code Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Eligibility (E) CFDA Number: Federal Pell Program ? 84.063 Federal Direct Loan Program ? 84.268 Questioned Costs: $3,098 Type of Finding: Other Matters Perspective Information: Repeat finding: No Systemic finding: No Criteria The School is required to resolve "C" codes before disbursing of Title IV funds to a student. Condition The School did not resolve the "C" code on the ISIR for student #34 prior to disbursing Title IV funds. The Student?s ISIR showed the student was in default on a loan. This was not cleared before disbursing the $3,098 of Pell funds. Cause This cause was due to an oversight Effect The student was credit with $3,098 of Pell it was not entitled to received. Recommendation There is no recommendation as this was an oversight. The School refunded the 3,098 of Pell funds. Views of Responsible Officials The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance requirements.

FINDING: 2020-003 Early Disbursements Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Special Tests and Provisions (N) CFDA Number: Federal Pell Program ? 84.063 Questioned Costs: $40,661c Type of Finding: Material Noncompliance Material Weakness in Internal Control Perspective Information: Repeat finding: No Systemic finding: Yes Summary of Universe and Sample of attribute tested "See Schedule of Findings and Questioned Costs for chart/table" Criteria An institution must comply with DOE regulations prior to disbursing Title IV funds to a student. Students must meet required hours and SAP before Title IV can be disbursed. Condition The School disbursed funds prior to the students meeting the required hours for second, third, and/or fourth payment periods. "See Schedule of Findings and Questioned Costs for chart/table" Cause The School failed to monitor attendance and SAP for eleven students prior disbursing Title IV funds. Effect 11 students were credited with $40,661 in Pell before meeting the required attendance parameters. Recommendation The School should implement additional checks and balances to ensure that adequate control and monitoring controls are in place to prevent early disbursements. Views of Responsible Officials The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance requirements.

FINDING: 2020-004 Enrollment Reporting Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Special Tests and Provisions (N) CFDA Number: Federal Pell Program ? 84.063 Federal Direct Loan Program ? 84.268 Questioned Costs: N/A Type of Finding: Material Noncompliance Material Weakness in Internal Control Perspective Information: Repeat finding: No Systemic finding: No Summary of Universe and Sample of attribute tested "See Schedule of Findings and Questioned Costs for chart/table" Criteria A school must report changes in the students? enrollment status to NSLDS within 60 days Condition The School did not update the change in students status for two students in a timely manner and failed to update the correct students change for twenty five students. Cause Due to the COVID pandemic, the School was unable to stay in compliance. Effect There could be inaccuracies in the students? information that is maintained by NSLDS. Recommendation The School should review every student?s enrollment status prior to report it to NSLDS to ensure that they reflect the correct information. Views of Responsible Officials The School misunderstood the procedures of reporting the correct date for the students? status change. As of the date of this report, the School has learned the proper protocol and will implement additional procedures to ensure student statuses are reported correctly in a timely manner.

FINDING: 2020-005 COD Reporting Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Reporting (L) CFDA Number: Federal Pell Program ? 84.063 Federal Direct Loan Program ? 84.268 Questioned Costs: N/A Type of Finding: Material Noncompliance Material Weakness in Internal Control Perspective Information: Repeat finding: No Systemic finding: No Summary of Universe and Sample of attribute tested "See Schedule of Findings and Questioned Costs for chart/table" Criteria A school must match the COD Disbursement dates with the students? ledger cards Condition The School did not provide access or documentation demonstrating the COD Disbursement dates matched the student ledger cards for all 53 students tested. Cause The School was not able to access the records. Effect The school was unable to demonstrate that the COD Disbursement dates matched the student ledger cards Recommendation The school must hire and or train other staff that is able to demonstrate that the COD Disbursement dates matched the student ledger cards Views of Responsible Officials The School has indicated to us that it will train and or hire a professional to demonstrate that the COD Disbursement dates matched the student ledger cards. See School?s correction action plan attached.